WORLD TRADE  
ORGANIZATION  TN/TF/W/133/Rev.3 
26 June 2009 
 (09-3152) 
Negotiating Group on Trade Facilitation Original:   English 
  
 
COMMUNICATION FROM THE FORMER YUGOSLAV REPUBLIC OF MACEDONIA, 
MONGOLIA, SWITZERLAND AND SWAZILAND 
 
Revision
 
 
 
 The following communication, dated 25 June 2009,  is being circulated at the request of the 
Delegations of the Former Yugos lav Republic of Macedonia, Mongo lia, Switzerland, and Swaziland. 
 
_______________ 
 
 
TRANSIT – THIRD REVISION OF TEXTUAL PROPOSAL TN/TF/W/133  
 
  The following textual proposal revises the textual proposals made in TN/TF/W/133/Rev.2 
by taking into account the discussion and other subm issions on this issue in the Negotiating Group.  
  The main purpose of the present revision is to incorporate into the text the corrections of 
TN/TF/W/133/Rev.2/Corr.1.  The revision also ta kes into account some of the more technical 
comments received during past discussions.  Co-Sponsors finally have attempted to correct the 
wording in a few places to insure that the text is valid  for all types of traffic in transit, irrespective of 
the mode of transport, where applicable.    Co-Sponsors acknowledge that a number of s ubstantive comments have been registered 
which have not yet been incorporated in the pr esent revision, pending further work and a better 
understanding of the issues.  Some of these issues have been highlighted by square brackets in the 
present text. 
 
_______________ 
 
 
(a) Scope 
 1. Definition of traffic in transit :  Goods – including those moved via fixed infrastructure, inter 
alia pipelines and electricity grids –, and mean s of transport (including baggage and the personal 
belongings of the person operating the means of transpor t) , shall be deemed to be in transit across the 
territory of a Member when the passage across such territory is only a portion of a complete journey 
beginning and terminating beyond the frontier of the Member whose territory the traffic passes. 
Traffic of this nature is termed "traffic in tran sit" irrespective of (i) trans-shipment, warehousing, 
short-term storage, breaking bulk, or change in th e mode of transport, and (ii) whether the goods or 
means of transport, after passing across a territory of a Member, return to the territory of a Member in 
which they originate or through which they have prev iously transited.  Means of transport shall be 
deemed to be traffic in transit also if they carry exclusively goods in trans it, even if the means of 
transport are not in themselves in tran sit according to the above definition. TN/TF/W/133/Rev.3 
Page 2  
 
  2. Each Member undertakes that if it grants to any en terprise, formally or in effect, exclusive or 
special privileges, such enterprise shall, in its regulations, formalities, fees and charges – including 
transportation charges –, on or in connection with traffi c in transit, act in a manner consistent with the 
provisions on traffic in transit of this Agreemen t and otherwise solely in accordance with commercial 
considerations. 
 
3. Exception :  The provisions on traffic in transit of this Agreement shall not apply to the 
operation of aircraft in transit, but shall appl y to air transit of goods (including baggage). 
 (b) Freedom of transit 
 
4. There shall be freedom of transit through the territory of each Member via the routes most 
convenient for international transit [for traffic in tr ansit to or from the territory of other contracting 
parties]. No distinction shall be made in the treatment  of traffic in transit which is based on flag of the 
vessel, the place of origin, departure, entry, exit or  destination, or any circumstances relating to the 
ownership of goods or means of transport.  
 5. Regulation on Traffic in Transit:  All regulation imposed by a Member on traffic in transit to 
or from the territories of other Members shall be re asonable, having regard to the conditions of the 
traffic.  
6. With respect to all [laws, regulations, forma lities], fees and charges, including transportation 
charges, imposed on or in connection with transit, each  Member shall accord to traffic in transit to or 
from the territory of any Member, treatment no less fa vourable than that accorded to its own export or 
import traffic. This principle refers to like produc ts being transported on the same route under like 
conditions. 
 
7. Most-favoured-nation treatment :  Without prejudice to paragraph (g)20, with respect to all 
laws, regulations, formalities, fees and charges – including transportation charges – , on or in 
connection with transit, each Member shall accord to traffic in transit to or from the territory of any 
other Member treatment no less favorable than the treatment accorded to traffic in transit to or from any third country. This principle refers to like prod ucts being transported on the same route under like 
conditions. 
 8. Treatment preceding and following transit :  Each Member shall accord to products and means 
of transport which have been or will be in transit through the territory of any other Member treatment 
no less favorable than that which would be accorded to such products and means of transport if they 
were traveling from their place of origin to their destination without going through the territory of 
such other Member.  Any Member shall, however, be free to maintain its requirements of direct 
consignment existing on the date of the GATT 1994 in respect of any goods in regard to which such 
direct consignment is a requisite condition of eligibil ity for entry of the goods at preferential rates of 
duty or has relation to the Member's prescrib ed method of valuation for duty purposes.  
 
(c) Duties, fees and charges 
 9. Members shall exempt traffic in transit from customs duties and from all transit duties and 
other fees and charges imposed in  respect of transit, except 
 
(i) reasonable charges for transportation (suc h as tolls, road charges and similar), 
having regard to the conditions of the traffic, or  
 TN/TF/W/133/Rev.3 
Page 3 
 
 
  (ii) reasonable transit charges commensurate with the administrative expenses 
entailed by transit or with the cost of  the service rendered. Any transit charge 
shall: 
- only be imposed for transit services provi ded directly linked to the specific 
transit movement in question;  
- not exceed the approximate cost of the transit service rendered;  and 
- not be calculated on an ad valorem  basis. 
10. Publication :  Members shall publish promptly informa tion on charges. This information shall 
include the reason for the charge, the responsible auth ority, the charges that will be applied, and when 
and how payment is to be made. The information shall be published via an officially designated 
medium, and to the extent practicable, an official website.1 
 11. Prior publication :  Except in urgent circumstances and other limited exceptions, which are 
made public, Members shall accord an adequate ti me period between the publication of information 
on new or amended charges and their entry into force.
2  
 
12. Periodic review :  Each Member shall periodically review its charges to ensure that they are in 
line with WTO commitments and with a view to reducing their number and diversity, where 
appropriate.3 
 (d) Transit formalities and documentation requirements 
 
13. Any Member may require that traffic in trans it through its territory be entered at the proper 
customs office without prejudice to the other commitm ents on transit, but such traffic in transit 
through their territory shall not be subject to an y unnecessary delays, restrictions, inspections or 
controls, and shall be granted e xpedited and simplified treatment at border crossing points, including 
sea, fluvial and air ports or inland terminals as app licable.  Such expedited and simplified treatment 
implies, inter alia  and where applicable: 
 
(i) Special border crossing facilities for transit:   To the extent practicable, 
physically separate transit infrastructure (such as lanes, berths and similar) shall be made available for traffic in transit at border crossings. 
(ii) Formalities adjusted to the specificities of the goods in transit :  In designing 
and applying transit formalities and documentation requirements, Members 
shall take account of the characteristics of traffic in transit. 
(iii) Limited physical inspections of goods:   Where goods are placed under a 
transit procedure, Members shall use risk management techniques adapted to 
the specific risks of traffic in transit to  enable any inspections to be targeted 
on the basis of the degree of risk attached to individual consignments. 
                                                     
 
1 Note to the reader: this paragraph may be dropped at a later stage if the issue is properly covered in 
another Article of the Agreement. 
2 Note to the reader: this paragraph may be dropped at a later stage if the issue is properly covered in 
another Article of the Agreement. 
3 Note to the reader: this paragraph may be dropped at a later stage if the issue is properly covered in 
another Article of the Agreement. TN/TF/W/133/Rev.3 
Page 4  
 
  Furthermore, Members shall not apply quality controls or controls of 
compliance with technical standards.  
(iv) Reducing the administrative bur den for traffic in transit:   Transit formalities 
and documentation requirements shall be  reasonable having regard to the 
conditions of the traffic, applied uniform ly and be not more trade restrictive 
than necessary to permit the control of the operation and to ensure that all 
requirements relating to the application of relevant law have been complied 
with.  For traffic in transit, Members shall provide for: 
- the processing of transit documents and data prior to the arrival of the 
transiting consignment;  
- the use, to the extent possible, of any commercial or transport document 
setting out clearly the necessary particulars as the descriptive part of transit declarations as a complement of the paper based transit declarations;  
- the establishment of a single window;  and 
- the establishment of an authorised tr ader scheme with a view to grant 
simplified treatment to traders with a good track record of compliance with 
transit formalities and documentation requirements.  
14. Nothing in these provisions shall affect the right  of Members to detain, restrict, inspect or 
control traffic in transit in a manner not otherwi se inconsistent with the Member’s WTO rights and 
obligations, in particular in cases of failure to comply with applicable laws and regulations. 
 
(e) Bonded transit regime and guarantees  
 15. Where a Member requires a guarantee to avoi d inland diversion of goods in transit, any 
person required to provide security shall be allowed to  choose any form of security provided that it is 
acceptable to the customs and other border authori ties. This Member shall also ensure that the 
guarantees required from transit operators are: 
 
(i) reasonable having regard to the conditions  of traffic and the characteristics 
and the nature and value of the consig nment in question, and limited to the 
amount of customs debt or other charges which may be incurred in respect of the goods; 
(ii) designed and applied on a regional or international basis to as great an extent 
as possible;  and 
(iii) released or discharged promptly and in full after the completion of the transit 
operation.  
16. Where a Member requires a guarantee for goods in transit, this Member shall allow 
guarantees to be renewed for subse quent consignments once a previous  one is proved to have reached 
its destination. No fees and charges shall be im posed in relation to the use of bonded transport 
regimes and guarantees except for those directly related to the approximate cost of any service rendered.   17. [In cases where a Member chooses to apply othe r appropriate measures to prevent the inland 
diversion of goods, no guarantee shall be required for the transit of goods.] TN/TF/W/133/Rev.3 
Page 5 
 
 
  (f) Cooperation and coordination 
 18. Amongst authorities :  Members shall ensure cooperation and coordination between all 
concerned authorities and agencies in their territory to facilitate traffic in transit.  Members shall 
ensure cooperation with other Members on issues of traffic in transit, including with regard to 
standardizing transit formalities and documentation requirements, coordinating operations of border 
crossings and mutual recognition of authorized trad er schemes.  To this end, neighbouring Members 
shall, as far as necessary, meet periodically to discuss and come to an understanding on the fees and 
charges, formalities, legal requirements and practic al operation of transit regimes relating to goods 
moving in transit between them.
4  
 
19. Between authorities and the private sector :  Members shall provide opportunities for 
interested traders or their representatives to comment  on the transit regime and its operation, including 
with regard to the introduction of new or amended transit fees and charges, and transit formalities and 
documentation requirements, with a view to minimizing unnecessary delays and restrictions on traffic 
in transit.  
 (g) Promotion of regional transit agreements or arrangements 
 20. Members shall promote bilateral and regional tran sit agreements or arrangements with a view 
to reducing trade barriers and enhance freedom of  transit. Members shall take full account of 
international standards and instruments when designing and applying those agreements or 
arrangements.  In particular, Members that are cont racting parties to regional transit agreements or 
arrangements shall strive to:  
(i) agree on common, simplified documents, or electronic messages, that shall be 
aligned with international standards; 
(ii) allow the same set of documents or electronic messages to accompany the 
consignment from the country of departure to destination; 
(iii) mutually recognize authorized trader schemes; 
(iv) define common measures relating to the monitoring of transit, inter alia  the 
appointment of national transit coordi nators; performance indicators (e.g., 
target clearance times) or public privat e partnerships to manage and monitor 
the arrangement; 
(v) include matters which are relevant beyond customs in the context of transit, 
such as road and transport issues.  
21. Regulations and formalities in connection with transit agreed upon in such agreements or 
arrangements shall be reasonable, ha ving regard to the conditions of the traffic. These agreements or 
arrangements shall be designed and implemented in su ch a way that they do not constitute a disguised 
restriction on international trade or an arbitrary or unjustifiable discrimination between Members.  
 22. Members participating in bilatera l or regional transit agreements  or arrangements shall afford 
opportunity for other interested Members to nego tiate their accession to such an agreement or 
arrangement or to negotiate comparable ones with it.  
 
                                                     
 
4 Note to the reader: this paragraph may be dropped at a later stage if the issue is properly covered in 
another Article of the Agreement. TN/TF/W/133/Rev.3 
Page 6  
 
  (h) Periodic review / Monitoring with a view to enhancing efficiency, transparency and 
predictability of the transit agreement or arrangement  
23. Periodic review : Each Member shall periodically review its transit formalities and 
documentation requirements to ensure that they ar e in line with WTO commitments and with a view 
to consolidating them and reducing their impact  on trade. Such reviews shall allow for the 
participation of all interested parties and, as appr opriate, may be held at a regional or international 
level.  (i) Transparency 
 
24. Publication :  Each Member shall publish all transit formalities and documentation 
requirements, and regional transit agreements or  arrangements[[, except if a non-Member-Party to 
such an agreement or arrangement opposes publicati on]]. The information shall be published via an 
officially designated source, such as the official gazette, the official journal or an official web-site.
5  
 
25. Prior publication :  Except in urgent circumstances and other limited exceptions, which are 
made public, Members shall accord an adequate time period between the publication of new or 
amended transit formalities a nd documentation requirements and their entry into force.6 
 
__________ 
 
                                                      
5 Note to the reader: this paragraph may be dropped at a later stage if the issue is properly covered in 
another Article of the Agreement. 
6 Note to the reader: this paragraph may be dropped at a later stage if the issue is properly covered in 
another Article of the Agreement.